4 Examples of How Enriched Data Can Generate Value
Advanced business analytics deliver competitive advantage to organizations that have the foresight to leverage data-driven insights as part of their strategic decision-making processes. A company’s first-party data is one of its most valuable assets, but the value of that information falls far short of its potential if it is not also enriched with trusted, curated third-party data. When the information stored in ERP software, CRM databases, marketing automation systems, and website analytics is combined with the right externally sourced data, company leaders gain access to a rich tapestry of information from which to make well-informed decisions.
When business leaders combine information from disparate data sources, they get access to a richer and more complete picture of a company’s customers, market area, competitors, and product domain. With data enrichment, business leaders can benefit from the principle that the whole is often worth more than the sum of its parts. Enrichment adds context, and in doing so, it creates new opportunities to generate business value.
Here are a few examples of how data enrichment is helping businesses to generate meaningful value.
1. Laser-Targeted Marketing Campaigns
Marketing professionals have long understood the value of enriched data. Bringing together internal data with information from trusted third parties, smart marketing leaders weave a rich tapestry that depicts their customers and prospects in vivid detail. Martech tools and CRM databases provide a solid foundation of first-party data. Augmenting that with demographic detail, mobility data, and clickstream analysis gives marketers a true 360-degree view of their target audience.
Leveraging data enrichment tools in the martech stack enables an agile marketing strategy built on a nuanced view of customers and their behaviors. Data enrichment adds meat to the bones of a basic marketing strategy. It fleshes out customer profiles and helps marketers build highly granular buyer personas.
With enriched data, marketers can segment their target audiences with phenomenal accuracy and craft campaigns personalized to the very specific needs of each audience. This, in turn, elevates the customer experience, leading ultimately to more satisfied customers, loyal brand advocates, and higher revenue. Mobility data adds even more detail to the picture, helping marketers understand customer behavior in new ways.
2. Understanding Insurance Risk in Fine-Grained Detail
In the insurance industry, data enrichment provides valuable information about many of the details that impact risk. In the past, insurers were limited to a coarse-grained view based on an insured property’s location. Armed with some basic location information, they assigned an overall risk level for various hazards. A property’s postal code, proximity to the nearest fire station, and local crime rates led underwriters to an overall risk assessment for each property.
Data analytics has changed that, giving insurers a far more detailed understanding of risk. With geospatial data enrichment, insurers have a far more robust picture of the risks associated with any given property. Wildfires, for example, can affect different properties in dramatically different ways. Homes located near combustible vegetation are at greater risk, as are properties situated along natural wind funnels. The distance between structures, the type of roofing material, and even the relative elevation of combustible materials with respect to a structure can all impact a property’s risk profile.
Precisely curates the most detailed, accurate, and up-to-date risk and context data available for insurance. By enriching existing property data with contextual details such as building footprints, materials and workmanship, prevailing weather conditions, traffic patterns, crime statistics, and more, insurers can develop a highly detailed picture of each individual property, resulting in the most accurate risk profile possible.
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3. Location-Based Insights for Telecom Providers
Data enrichment offers telecommunications providers a path to understanding their customers’ usage patterns, lifestyles, and key events that often correlate with changes in service. Armed with that information, they can respond with the right offers at the right time. Key demographic factors such as age, income level, and lifestyle preferences inform telecom companies of opportunities to target customers for upselling new products and services, as well as opportunities to reach prospects with the right messages at the right time.
Data enrichment provides visibility to key life events, such as a child leaving for college or empty-nesters downsizing to a new home. Such events may indicate a new buying trigger, or could indicate a higher likelihood that a customer might discontinue existing services. Data enrichment provides a more complete picture that can guide telecoms in making the right investments to ensure customer retention and optimize new customer acquisition.
4. Retail Site Selection
While demographic data enrichment has long been a staple of smart marketing departments, today’s business leaders have access to a much greater wealth of information. Retail businesses are combining mobility data with other geospatial information to develop a rich understanding of potential new locations.
Starting with internal data that reflects the current state of the business along with existing customers, their location, and core demographic data, retailers can use data enrichment to build out a vivid picture of their clientele, overlaid with geospatial information that reflects traffic patterns, footfall on various days and at various times, competitive presence, and more. That leads to better site selection processes, as well as a clearer baseline for evaluating store performance in the context of multiple locations.
The possibilities for creating value through data enrichment are virtually endless. By combining existing data with accurate and up-to-date data from external sources, innovative businesses will constantly find new ways to generate value.
Unfortunately, though, not all data providers are created equal. Anyone who has run more than a few marketing campaigns using third-party lists probably knows what it’s like to work with poor quality data. The same caveat applies to any data enrichment effort; the quality of the results is directly dependent on the quality of the source information.
Whether you’re seeking detailed demographic and behavioral information about consumers in your target market, geospatial insights to drive site selection or marketing decisions, or developing a better understanding of your product portfolio and the factors that correlate with higher sales, Precisely can help. Our datasets can help support your enriched data strategy to drive meaningful insights and identify value-generating opportunities.
To learn how you can unlock business value with data enrichment, watch our free on-demand webcast: Enrich Your Data Your Way.